INFLUENCE OF MARKETING PROMOTIONS STRATEGY ON PERFORMANCE OF THE TEA INDUSTRY IN MOUNT KENYA REGION

  • Charles Komu Gikunju Jomo Kenyatta University of Agriculture and Technology
  • R. Gakure Jomo Kenyatta University of Agriculture and Technology
  • George Orwa Jomo Kenyatta University of Agriculture and Technology
Keywords: Marketing, Promotion, Strategy, Performance

Abstract

Purpose of the Study: The purpose of the study was to examine whether Marketing Promotion Strategy influence performance of tea industry in Mount Kenya region.

Statement of the Problem: In Mt Kenya region, there has been uprooting of tea bushes, tea picking boycotts, destruction of factory infrastructure besides threatening the life of factory managers in Mt Kenya region once the bonuses are announced year after year. Moreover, the low earnings have threatened the envisaged leading position of tea industry in employment creation of tea, income generation and foreign exchange earnings, in Vision, 2030. Against this backdrop there is need to identify significant strategic approaches needed in the management of the entire tea industry to reverse the situation.

Study Methodology:  The study adopted descriptive research design. The target population was   117 management team comprised of five regional management team ; regional accountant, operations manager, production manager, auditor, and 112 top management in 16 factories who include, 16 manager 16 production managers 32 accountants 32 training managers and 16 field coordinators sixteen factories that lie in Mount Kenya region.

Study Results: Correlation results indicated that there was a strong positive association between marketing promotion strategy and performance of tea industry (r=.806). The results showed marketing promotion strategy was significant with performance of tea industry since the p-value is less than 0.05 (p=0.000). Regression results showed that there is a strong positive relationship between marketing promotion strategy and financial performance of the tea industry (r=.844).

Conclusion: the study concluded that marketing promotion strategy has a high prediction power when grouped together in terms of tea pricing using predictive discriminant analysis.

Policy Recommendation: The study recommended that factory management need to create enhanced and effective marketing promotion strategies which can enable the farmers get higher income due to better prices for their tea.

Key Words: Marketing, Promotion, Strategy, Performance

Author Biographies

Charles Komu Gikunju, Jomo Kenyatta University of Agriculture and Technology

PhD Candidate

R. Gakure, Jomo Kenyatta University of Agriculture and Technology

Lecturer

George Orwa, Jomo Kenyatta University of Agriculture and Technology

Lecturer

References

Arasa, R., & K'Obonyo, P. (2012). The relationship between strategic planning and firm performance. International Journal of Humanities and Social Science, 2(22), 201-213.

rasa, R., & K'Obonyo, P. (2012). The relationship between strategic planning and firm performance. International Journal of Humanities and Social Science, 2(22), 201-213.

Ariyawardeana A .(2003). Sources of Competitive Advantage and Firm Performance: The Case of Sri Lankan Value-Added Tea Producers. Asia Pacific Journal of Management, Vol. 20, pp. 73-90.


Asopa, V. N. (2007). Tea Industry of India: The Cup that Cheers has Tears; Ahmedabad, India. :Indian Institute of Management,

Barney, J. B., & Clark, D. N. (2007). Resource-based theory: Creating and sustaining competitive advantage. Oxford University Press on Demand.

Baroto, M. B., Arvand, N., & Ahmad, F. S. (2014). Effective strategy implementation. Journal of Advanced Management Science Volume, 2(1).


Baroto, M. B., Arvand, N., & Ahmad, F. S. (2014). Effective strategy implementation. Journal of Advanced Management Science Volume, 2(1).

Bass, B. M., & Bass, R. (2009). The Bass handbook of leadership: Theory, research, and managerial applications. Simon and Schuster.

Belleflamme, P., & Peitz, M. (2015). Industrial organization: markets and strategies. Cambridge University Press.

Bennett, A. M & Hill, R. P. (2012). The universality of warmth and competence: A response to brands as intentional agents. Journal of Consumer Psychology, 22(2), 199-204.


Bergeron, F. (1991). Identification of strategic information systems opportunities: Applying and comparing two methodologies. MIS Quarterly 15, Issue 1, 89 -103

Bessant, J. and Tidd, J. (2007). Innovation and entrepreneurship. John Wiley & Sons: Chichester, West Sussex, UK.

Bhatti, O. K. (2011). Strategy implementation: An alternative choice of 8S’s. Annals of Management Research, 1(2), 52-59.


Biegon. P.(2006).Challenges facing the Kenyan tea industry in exporting of value-added (Branded) tea. Masters Project: University of Nairobi.

Bojan S; Zorica V & Dragan,D .(2014). Strategic Cost Management as Instrument for improving competitiveness of Agribusiness Complex. Journal of Economics of Agriculture Vol (61),(4 ) page 1005-1020)

Borg, W. R. & Gall, M. D (1996). Educational research. New York & London: Longman.
Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27 – 40.

Brinkschroder, N. (2014). Strategy Implementation: Key Factors, Challenges and Solutions. 4th IBA Bachelor Thesis Conference, 1-9.

Burnes, B. (2009). Managing change:A strategic approach to organizational dynamics 5 th Editi on. FT Prentice Hall.

Castellacci, F. (2008). Innovation and the competitiveness of industries: comparing the mainstream and the evolutionary approaches. Technical forecasting and social Change 75: 984-1006.

Cervantes-Godoy, D. and J. Brooks. (2008).Smallholder Adjustment in Middle - Income Countries: Issues and Policy Responses”, OECD Food, Agriculture and Fisheries Working Papers , No. 12, OECD, Paris.

Chakravarthy, B. S. (1986). Measuring strategic performance. Strategic management journal, 7(5), 437-458.


Chandi, M. J. (2017). Influence Of Strategic Options on Perfomance of Organisations: A Case of Unilever Tea Kenya Ltd, Kericho County, Kenya. Imperial Journal of Interdisciplinary Research, 3(4).

Chandi, M. J. (2017). Influence Of Strategic Options on Perfomance of Organisations: A Case of Unilever Tea Kenya Ltd, Kericho County, Kenya. Imperial Journal of Interdisciplinary Research, 3(4).

Cinquini, L., & Tenucci, A. (2006). Strategic management accounting: Exploring distinctive features and links with strategy. MPRA (Munich Personal RePEc Archive), No. 212, 1-26.

Cinquini, L., & Tenucci, A. (2006). Strategic management accounting: Exploring distinctive features and links with strategy. MPRA (Munich Personal RePEc Archive), No. 212, 1-26.

Cohen, L., Manion, L. & Morrison, K. (2000). Research methods in education. London: Routledgefalmer.

Cohen, L., Manion, L. & Morrison, K. (2000). Research methods in education. London: Routledgefalmer.


Cole F.L. (1988) .Content analysis: process and application. Clinical Nurse Specialist 2(1), 53–57.

Cresswell, J. (2009).Research design: quantitative and mixed mode approaches, 2nd Ed. London : Sage.

Daft, R. L. (2002). Management. Chicago: Dryden Press.

David F R. (2009).Strategic Management: Concepts and Cases. Prentice Hall, Upper Saddle River.

David, F. R. (2007).Strategic Management Concepts and Cases, (11th ed.),Prentice Hall, New York.

Dekker, H. C. (2003). Value chain analysis in interfirm relationships: a field study. Management accounting research, 14(1), 1-23.


Dess, G.G., and Priem, R.L. (2011). Consensus-Performance Research: Theoretical and Empirical Extensions.Journal of Management Studies, 32, 401-417.

Dobson, S. (2003): Consumers seeking 'citizen brands'.Marketing Magazine.(108)17, pg. 23.
Dodgson, M., Gann, D. M., & Salter, A. (2008). The management of technological innovation: strategy and practice. Oxford University Press on Demand.


Dulekha, K. (2008). An Overview of the Sri Lankan Tea Industry: An Exploratory Case Study. The Marketing Review, Vol. 8, Issue 4(Winter), pp. 367-381

Dulekha, K. (2008). An Overview of the Sri Lankan Tea Industry: An Exploratory Case Study. The Marketing Review, Vol. 8, Issue 4(Winter), pp. 367-381

Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of management review, 14(1), 57-74.

Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of management review, 14(1), 57-74.

Gayani, I.V.E. (2006). Value Addition in Sri Lanka Tea Industry. In proceedings of the of the Annual Research Symposium - Faculty of Graduate Studies. University of Kelaniya.

Gelman, A & Hill J. (2006).Data Analysis Using Regression and Multilevel/Hierarchical Models. Cambridge: Cambridge University Press.

Gelman, A & Hill J. (2006).Data Analysis Using Regression and Multilevel/Hierarchical Models. Cambridge: Cambridge University Press.

Gibbon, P. (2006). Current trends and the new development role of commodities. A study for the common fund for commodities, final report.Copenhagen: Danish Institute for International Studies.

Gibbon, P. (2006). Current trends and the new development role of commodities. A study for the common fund for commodities, final report.Copenhagen: Danish Institute for International Studies.

GoK .(2016). Report of Tea Industry Task Force. Nairobi: Government Printer

Greenhalgh, C.A. (2005), „Why does market capitalism fail to deliver a sustainable environment and greater equality of incomes?‟ Cambridge Journal of Economics,29(6), Special Issue on Economics for the Future.

Ha, S.& Stoel, L. (2009).Consumer e-shopping acceptance: antecedents in a technology.
Hammer, M. & Champy, J. (1993). Reengineering the corporation; a manifesto for business revolution. New York: Harper-Collins Publishers.

Hilal, M. I. M., & Mubarak, K. M. (2016). International Tea Marketing and Need for Reviving Sri Lankan Tea Industry. Journal of Management, 9(1).

Hilman H., Kaliappen N. (2014). Strategic role of customer orientation in differentiation strategy and organizational performance nexus: A Partial Least Square (PLS) approach. Research Journal of Applied Sciences, Engineering & Technology, 7, 4150-4156.

Hislop, M. (2001).An Overview of Branding and Brand Measurement for Online Marketers. Dynamic Logic's Branding , Vol. 101, pp. 1-22.

Horngren, C. T. (2006). Cost Accounting; A managerial emphasis (10th ed.). Pearson Prentice Hall.

Hudson, D. and Hite, D. (2003). Willingness to Pay for Water Quality Improvements: The Case of Precision Application Technology. Journal of Agricultural Resource Economics, 27: 433–449.

IFC. (2013). Inclusive Business Case Study: Kenya Tea Development Agency Ltd (KTDA).Nairobi:IFC

Innes,J, Mitchel, F & Sinclair D. (2000).Activity-based costing in the U. K.‟s larges companies: Management Accounting Research, Vol (11) 349-362
International Journal of Marketing Research, Vol. 20 No. 4, pp. 297-313.

IPAR. (2001). Liberalization of the smallholder tea sub-sector: progress, impacts and recommendation for further development. IPAR Policy Brief.

Jaakkola, M. (2006). Strategic marketing and its effect on business performance: moderating effect of country-specific factors. Masters of Science : University of Helsinki

Johnson, R. B., and Onwuegbuzie, A (2004) Mixed Methods Research: A Research Paradigm Whose Time Has Come. Educational Researcher 33(7):14-26
Journal of Development Economics, 71, 289--310.

Kaburu, M. G., & Theuri, F. S. (2017). Determinants of Effective Value Addition in the Tea Processing Sub-Chain to Kenya Tea Exports-A Survey of Kenya Tea Development Agency. Imperial Journal of Interdisciplinary Research, 3(3).


Kaburu, M. G., & Theuri, F. S. (2017). Determinants of Effective Value Addition in the Tea Processing Sub-Chain to Kenya Tea Exports-A Survey of Kenya Tea Development Agency. Imperial Journal of Interdisciplinary Research, 3(3).

Kaplan, R. S. (2005). How the balanced scorecard complements the McKinsey 7-S model. Strategy & leadership, 33(3), 41-46.

Kaplan, R. S., & Norton, D. P. (1996). Using the balanced scorecard as a strategic management system.

Kaplan, R. S., & Norton, D. P. (2001). Transforming the balanced scorecard from performance measurement to strategic management: Part I. Accounting horizons, 15(1), 87-104.

Mbui, K. (2016). Effect of strategic management practices on export value addition in the tea subsector in Kenya. Phd thesis, Jomo Kenyatta University, Kenya.

McMillan & Schumacher. (2001). Research in Education – A Conceptual Introduction.

Metawie, M., Gilman, M. (2005). Problems with implementation of performance measurement systems in the public sector where performance is linked to pay: Literature drawn from United Kingdom. Conference on performance measurement and management control.

Mi Dahlgaard-Park, S., & Dahlgaard, J. J. (2007). Excellence–25 years evolution. Journal of Management History, 13(4), 371-393.

Michalski, A. (2011). The McKinsey 7-S Framework: Invented in the 1980s and still a possibility for success today. GRIN Verlag.

Miller, D .(2002). Successful Change leaders: What Makes Them? What Do They Do That Is Different? Journal of Change Manage., 2(4): 359-68.

Ministry of Agriculture .(2007).Task Force Report on the Tea Industry: Government Printer Nairobi, Kenya:

Ministry of Agriculture. (2009). Strategic Plan 2008 –2012.Kenya: Ministry of Agriculture.

Mitnick, B. M. (2015). Agency theory. Wiley Encyclopedia of Management.

Modder, W & Amarakoon, A .( 2002). Tea and Health. Talawakella:The Tea Research Institute of Sri Lanka,

Moor, L. (2007). The Rise of Brands. New York:Berg Publishers.


Nzeki, D. M. (2014). The Relationship between Tea Trade Value Addition & Profitability of Exporting Companies in the Kenyan Tea Industry. Unpublished MBA Project, University of Nairobi.


Odhiambo, l .(2014). Strategy implementation and performance of major tea factories in Kericho County, Kenya. Masters Project, university of Nairobi.
orientation, relationship marketing and resource-advantage theory. International Journal of Management Reviews . 2(1): 17-4

Peters, T. & Waterman R. (1982). In Search of Excellence: Lessons from America‟s Best Run Companies. New York: Harper and Row.


Ping, L. W. (2010). Study on Tea Brand Strategy. Master's thesis. Shanghai Jiaotong University

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. pearson.

Wiseman, C. (1988).Strategic information systems .New York: Richard Irwin
World Development Report. (2008). Reshaping Economic Geography. Washington: World Bank
Published
2019-04-09
How to Cite
Gikunju, C. K., R. Gakure, & Orwa, G. (2019). INFLUENCE OF MARKETING PROMOTIONS STRATEGY ON PERFORMANCE OF THE TEA INDUSTRY IN MOUNT KENYA REGION. African Journal of Emerging Issues, 1(4), 25-47. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/25
Section
Articles